GIFT CITY - Gujarat International Finance-Tec City (GIFT)
What is Gift City?
Background: GIFT City & IFSC
GIFT City- India's only approved IFSC
- Spread over 886 acres of land and
being expanded to 2,000 acres. - Free trade zone with tax incentives enabling flow of financial products and services across borders.
- Globally benchmarked IFSC developed by the Government of Gujarat through a joint venture.
- Enables domestic financial services companies in cross border business.
What is International Financial Services Centre (IFSC)
- Separate Financial Jurisdiction within India (Full Convertibility).
- Sovereign support, including special carve outs from domestic laws.
- Fully fledged Financial ecosystem with global connects.
- IFSC Unit- Treated as a ‘non-resident’.
- Unified Financial Regulator (IFSCA) with Globally aligned regulations.
Benefits — GIFT City, IFSC
Cat - III AIFs
- Tax paid at Fund level.
Exemption from tax on income from
Transfer of securities (excluding shares of Indian company), including debt, derivatives, offshore securities, etc.
Income on transfer of shares in an Indian company is taxable at:
STCG – 20% if STT paid, else 30%
LTCG – 12.5%
Income in respect of securities (such as interest and dividends) is taxable at 10%
No GST for services like fees, etc.
PAN and Income-tax return filing exemption#
Benefits for NRIs / Foreigners:
Less paperwork
No TDS
CKYC needed for NRIs
Registration with Fund Administrator required
No restrictions on repatriations
*All units of Cat III AIF are to be held by non-residents other than units held by the sponsor or manager
#subject to conditions
@ End investor’s taxes will be different depending on their tax jurisdictions.
GIFT City Investment Routes - Individual
GIFT City Investment Routes – Indian Corporates
Indian corporates can make outbound investments via the GIFT City route under the Overseas Portfolio Investment (OPI) framework. Under this route, corporates are allowed to invest up to 50% of their net worth, as per the latest audited balance sheet. The investment must be in listed securities or regulated funds (Including Private Equity Funds) set up outside India. The process begins with obtaining a declaration from the authorized bank confirming the company’s eligibility to make OPI transactions. This involves submission of audited financials and net worth confirmation. Once the declaration is obtained, the corporate needs to open an account with the Asset Management Company (AMC) offering the fund in GIFT City and submit the bank declaration to them as part of the onboarding process.
| Entity | Procedure |
|---|---|
| From Bank | Corporate has to submit the latest audited balance sheet, and net worth details to the bank. The bank will verify the documents and issue a declaration confirming eligibility for Overseas Portfolio Investment (OPI) up to 50% of net worth. |
| From AMC | Simultaneously, the corporate has to open an investment account with the AMC and submit the OPI declaration issued by the bank as part of the onboarding process. |
Points to remember
• Prefer using primary bank (home branch) for smoother coordination
• Investment Allowed up to 50% of the net worth (Not a annual limit)
• HUFs and Trusts are not eligible under this route.
Outbound Investments
Benefits of investing in global equities
Outbound Investment Options
Product Offerings - Outbound
AMC Track Record* (Past Performance, Returns in INR)
*The returns mentioned above represent the AMC’s historical performance and are intended to highlight its past track record.
^ Performance of their Mutual Fund
Inbound Investment Options
Product Offerings – Inbound Equity
AMC Track Record* (Past Performance, Returns in INR)
Mutual Fund (Inbound) Investment Options
Product Offerings – Indian Mutual Funds Available Through GIFT
DEBT AIF (Inbound) Investment Options
Product Offerings – Inbound Debt
DEBT AIF (MEDIUM-LONG TERM)
Neo Special Credit Opportunities Fund II (CAT II AIF)
DISCLAIMER
- This presentation is for informational purposes only and should not be construed as an offer to sell or a solicitation to buy any securities or other financial instruments mentioned herein. The information provided, including any third-party data, is not guaranteed to be accurate or complete and should not be relied upon without appropriate due diligence by the investor.
- Investments in securities and equity-related instruments are subject to market risks, which may be specific to a security, sector, or market and can be influenced by company performance, industry trends, political developments, and macroeconomic factors.
- Centricity and its directors, employees, and affiliates do not guarantee or assure any returns on funds or securities invested through any products, strategies, or schemes. Portfolio values may fluctuate based on prevailing market conditions and various external forces. Neither Centricity nor its associates shall be held responsible or liable for any loss, shortfall, or damage arising from such fluctuations or market movements.
- Investors are solely responsible for their investment decisions and outcomes. We recommend consulting a qualified financial advisor before making any investment decisions. Centricity does not accept any liability for losses incurred directly or indirectly by acting on the information provided in this presentation.